El Salvador buys the dip defying IMF demands: Over $100M in BTC added as price wobbles

El Salvador executed its largest single-day Bitcoin (BTC) purchase since adopting the cryptocurrency in 2021, acquiring roughly 1,090 BTC worth approximately $100 million as prices slid below $90,000 on Nov. 18.

President Nayib Bukele disclosed the transaction on X with a screenshot from the government’s Bitcoin dashboard showing total holdings had climbed to 7,474 BTC, worth between $680 million and $700 million at current prices.

The acquisition marks a 17% jump in national reserves over seven days and represents the most significant single-session addition to El Salvador’s stack.

The buy landed during a broader risk-asset selloff that erased Bitcoin’s 2025 gains and pushed prices nearly 30% below the October record above $126,000. The drawdown stems from doubts over Federal Reserve rate cuts and a correction in artificial intelligence stocks.

The purchase extends El Salvador’s dollar-cost-averaging program, launched in November 2022, with a commitment to acquire 1 BTC per day.

The government has maintained that accumulation strategy through both bull and bear cycles, occasionally adding larger tranches when prices fall sharply.

On-chain structure and transparency

The new coins flow into El Salvador’s Strategic Bitcoin Reserve, a custody framework the National Bitcoin Office deployed in August 2025. The structure distributes holdings across multiple wallets, each capped at 500 BTC, with a public dashboard aggregating balances.

Before the recent buy, disclosed reserves ranged from 6,100 to 6,313 BTC. Bukele’s May and September updates showed several hundred million dollars in unrealized profit when Bitcoin traded near $100,000.

Third-party trackers, including Bitcoin Treasuries and KuCoin, now report the updated figure of 7,474 BTC. The acquisition registers as a small fraction of daily Bitcoin turnover but carries weight against thin spot order books during risk-off sessions.

The timing positions El Salvador as one of the few institutional buyers willing to add exposure while exchange-traded funds record net outflows.

Additionally, the purchase reignites friction with the International Monetary Fund (IMF).

El Salvador secured a 40-month, $1.4 billion Extended Fund Facility in late 2024 and early 2025, with loan documents requiring the government to scale back provisions of its 2021 Bitcoin Law.

Tax payments in Bitcoin were prohibited, and private sector acceptance shifted from mandatory to voluntary. Per the IMF staff report, authorities “remain committed to not increasing the public sector’s exposure to Bitcoin,” and directors welcomed that pledge while warning about financial-stability and fiscal risks.

In March, El Salvador committed “not to accumulate further bitcoins at the level of the overall public sector” as part of the program. Yet, Bukele has continued buying anyway.

The government maintained its daily acquisition policy after the IMF agreement and executed a ceremonial 21 BTC purchase in September to mark “Bitcoin Day,” which contradicted the program’s terms.

IMF officials have attempted to reconcile the discrepancy by stating that increases to the Strategic Bitcoin Reserve remain consistent with conditionality, without clarifying how purchases by the National Bitcoin Office avoid adding to overall state exposure.

Market depth and sovereign signaling

The $100 million order flow carries symbolic weight beyond its size. El Salvador operates one of the few sovereign Bitcoin treasuries and has demonstrated a willingness to lean into drawdowns, even amid multi-year IMF obligations.

The buy arrived as Bitcoin broke below $90,000 for the first time in roughly seven months, a threshold that triggered selling from leveraged positions and institutional holders.

From a market microstructure perspective, the transaction provides visible support in thin books during a session when most institutional capital fled risk assets.

The government’s dashboard update and Bukele’s public disclosure reinforce the administration’s commitment to accumulation regardless of short-term price action or external pressure from multilateral lenders.

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